Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q4 FY2017 Earnings Presentation
43 slides from Union Bank Of India's earnings presentation, May 8, 2017
Slide 1: Financial Results Q4/FY17 & FY 2016-17
Financial Results Q4/FY17 & FY 2016-17 Please follow us on: May 8, 2017 @unionbankofficial @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube
Slide 2: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 2
Slide 3: Snapshot as on March 31, 2017
Snapshot as on March 31, 2017 Total Business ` 680076 crore Gross Advances ` 301684 crore Total Deposits ` 378391 crore Net Profit (Q4FY17) ` 109 crore Net Profit (FY17) ` 556 crore Earning Per Share (FY17) ` 8.08 ROA (%)(FY17) 0.13 ROE (%)(FY17) 2.91 Net NPA Ratio 6.57 Basel III Tier I CAR 9.02 Bas
Slide 4: Strong Liability Franchise
Strong Liability Franchise ` crore Total Deposits CASA Portfolio 32.3 31.5 31.5 36.8 34.4 379807 378391 4385 6616 361454 139708 130308 6693 110876 114011 342720 106604 338727 6634 375422 371775 110116 4189 81133 104072 354761 82130 90551 336086 334538 29743 24474 23460 29592 26236 Mar-16 Jun-16 Sep-
Slide 5: Strong Liability Franchise: Savings Deposit Growth and Cost of Deposit
Strong Liability Franchise Movement in Savings Deposit growth and Cost of Deposit 46.8 28.3 23.4 25.0 7.3 7.2 7.1 15.3 6.9 6.8 6.5 6.5 10.6 10.3 6.3 9.9 13.4 8.9 5.9 5.0 5.0 Dec-15 Dec-16 Jun-15 Jun-16 Mar-15 Mar-16 Sep-16 Mar-17 Sep-15 Savings Deposit growth rate (YoY) Cost of deposit (%) 5
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Advances (` crore) 278368 301684 277725 268553 277012 251653 242935 251888 249741 272238 26072 25618 26480 27271 29446 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Domestic Overseas Retail Agriculture MSME 11.5% YOY 23.2% YOY 13.6% YOY 44124 61913 40380 37492 37623 41159 58268
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio RAM* share (%) in Domestic advances 53.8 50.5 48.8 44.3 Mar-14 Mar-15 Mar-16 Mar-17 Composition of Advances 3.1 Retail Agriculture MSME 6.1 6.2 Home Industry Vehicle 7.5 Other Small & 31% Education Agri. Marginal Farmers LAP 8.2 46% Personal 54% Service 68.8 Others 69% *Re
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio S No. Sectors Top 10 Sectors Amount (% Share in Domestic Advances) (` crore) Mar Sep Dec Mar Mar 2016 2016 2016 2017 2017 1 Agriculture 15.5 16.3 16.3 16.2 44124 2 Retail Advances 13.0 14.9 15.1 14.8 40380 3 Infrastructure 13.6 14.5 15.6 14.7 40026 4 Trade 11.5 12.1 11.3 1
Slide 9: Investments
Investments Investment (` Crore) 134597 113332 88640 Mar-16 Dec-16 Mar-17 (` crore) Mar Duration Investment Composition (%) 2017 (Years) Held to Maturity 67027 3.99 41% Held to Maturity Held for Trading 19 6.95 59% Held for Trading Available for Sale Available for 46286 4.49 Sale 0% Total Investment
Slide 10: Overseas Operations
Overseas Operations Business from Overseas Operations US $ in billion Mar Dec Mar Growth (%) (` in crore) 2016 2016 2017 Y-o-Y Y-o-Y (US$) (INR) 4.9 4.6 5.6 Total Business 12.5 10.5 (32706) (31656) (36062) 1.0 0.6 1.0 Total Deposits 1.9 -0.0 (6634) (4385) (6614) 3.9 4.0 4.6 Total Advances 15.2 13.2
Slide 11: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) Mar Dec Mar Growth (%) 2016 2016 2017 Y-o-Y Q-o-Q LIABILITIES Capital 687 687 687 0.0 0.0 Share Application Money 0 0 541 -- -- Reserves and surplus 22204 22890 22748 2.5 -0.6 Deposits 342720 379807 378391 10.4 -0.4 Borrowings 30958 39949 41226 33.2 3.2 Ot
Slide 12: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 12
Slide 13: Cost & Yield Ratio
Cost & Yield Ratio Parameters Mar-16 (Q4) Dec-16 (Q3) Mar-17 (Q4) FY 2016 FY 2017 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 6.86 6.75 6.35 6.28 5.98 5.91 7.10 7.00 6.36 6.28 Cost of Funds 6.22 5.98 5.52 5.34 5.41 5.24 6.48 6.21 5.73 5.53 Yield on
Slide 14: Movement of NIM & NII
Movement of NIM & NII 2.32 2.28 2.30 2.27 2.39 2.01 2.32 2.33 2.46 2.36 2.43 2.40 2.04 2.23 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 NIM Domestic NIM Global NIM Domestic NIM Global (` crore) (` crore) 2387 8903 2277 2136 2085 2103 8314 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 Net
Slide 15: Non-Interest Income
Non-Interest Income (` crore) Parameters Mar-16 Sep-16 Dec-16 Mar-17 Growth Growth FY FY Growth (Q4) (Q2) (Q3) (Q4) (%) (%) 2016 2017 YOY QOQ a. Core Non Interest 551 498 472 641 16.3 35.8 1879 2068 10.1 Income b. Treasury Income 390 598 822 728 86.7 -11.4 1567 2696 72.0 W/w Profit on Sale of 206
Slide 16: Profitability
Profitability (` crore) 7430 2134 1820 1851 1626 5722 1410 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 Operating Profit Operating Profit 16
Slide 17: Provisions
Provisions (` crore) Parameters Mar-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 (Q4) (Q2) (Q3) (Q4) NPAs 2008 1598 1582 1505 4655 6032 Standard Assets -63 124 78 249 -101 506 Depreciation on Investment 42 -12 81 604 149 630 Shifting Loss 0 0 0 0 6 2 Restructured Advances -305 -1 -10 88 -623 66 Others (F
Slide 18: Net Profit
Net Profit (` crore) 177 1352 167 556 104 109 97 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 18
Slide 19: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.35 54.25 52.10 0.17 46.75 46.75 46.42 44.32 0.13 0.10 0.10 0.09 Mar-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 Mar-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 (Q4) (Q2) (Q3) (Q4) (Q4) (Q2) (Q3) (Q4) S. No. Efficiency Parameters M
Slide 20: Efficiency Ratios
Efficiency Ratios Sn. Profitability Parameters Mar-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 (Q4) (Q2) (Q3) (Q4) 1 Business per ` crore 147.7 151.8 155.0 158.8 147.7 158.8 Branch 2 Business per ` crore 17.5 17.0 17.6 18.4 17.5 18.4 employee 3 Gross Profit per ` crore 1.3 1.7 1.7 2.0 1.4 1.7 Branch 4 G
Slide 21: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Parameters Mar-16 Sep-16 Dec-16 Mar-17 FY 2016 FY 2017 (Q4) (Q2) (Q3) (Q4) Gross NPAs - Opening 18495 27281 29862 32403 13031 24171 Add : Additions 6170 3396 3294 2951 12952 13244 Less : Reductions 494 815 753 1642 1812 3703 1. Recoveries 20
Slide 22: Containing Slippages – A Priority
Containing Slippages – A Priority (` crore) Slippages 6170 3603 3396 3294 2951 Mar-16 (Q4) Jun-16 (Q1) Sep-16 (Q2) Dec-16 (Q3) Mar-17 (Q4) 22
Slide 23: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectors Slippages NPAs Mar % to Total % to Sector Loan During Q4 2017 NPAs FY 17 Mar-16 Sep-16 Dec-16 Mar-17 Retail Loans 308 1258 3.7 2.54 3.10 2.99 3.12 Agriculture 274 2250 6.7 5.21 5.11 5.61 5.10 Micro & Small (MSE) 362 4205 12.5 7.79 8.50 9.25 8.92 Medium & Lar
Slide 24: Restructured Assets
Restructured Assets (` crore) Mar-17 (Q4) Particulars Standard NPA Total Restructured Assets as on January 01, 2017 5523 10822 16345 Fresh Restructuring during the Quarter 0 0 0 Upgradation to Standard Restructured Accounts during the Quarter 264 -264 0 Restructured Standard Advances which cease to
Slide 25: Stress Mostly Recognized
Stress Mostly Recognized (` crore) S.N. Sector Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infrastructure 40026 4700 1917 16.5 a. Power (private) 17303 1616 1112 15.8 b. Roads 7322 1297 765 28.2 2 Engineering 5106 1143 1110 44.1 3 Textiles 7017 1821 453 32.4 4 Iron & Steel 11018
Slide 26: Basel III: Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio Movement of Capital Adequacy Ratio 0.64 11.79 10.56 0.49 11.79 11.19 11.36 0.19 1.12 10.56 10.75 0.12 0.19 2.63 2.86 2.77 2.42 2.36 8.14 8.39 8.56 8.51 9.02 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 CRAR RWA Impact of Profit Share AT1 Tier 2 CRAR Mar-16 g
Slide 27: Shareholding Pattern
Shareholding Pattern Share Capital ` 687.4 crore Public & Mar-17 No. of Equity Shares 68.74 crore others 10.73% Net Worth ` 19094 crore Market Cap ` 10717 crore DIIs The GOI has infused Capital of ` 541 crore in 20.81% the Bank on March 31, 2017 as Share Govt. of Application money India 63.44% FIIs
Slide 28: Extensive & specialized distribution network
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (16) SEMI- (10) (24) Arunachal Pradesh 20% URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) 30% (1
Slide 29: Financial Inclusion: PMJDY
Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18396 No. of BCs 5407 Sub Service Areas 5407 Urban Wards 2581 Accounts opened till March 31, 2017 68.06 Lakh Deposits ` 1353.85 Crore RuPay Cards issued 49.35 Lakh Aadhar Se
Slide 30: Financial Inclusion: Mudra Yojana
Financial Inclusion Progress under Mudra Yojana (PMMY) Category No. of Sanctioned Amount Outstanding Amount Accounts (` crore) (` crore) Shishu (< ` 50k) 53227 186 154 Kishor (Above ` 50k-5 Lakh) 86890 1797 1520 Tarun (Above ` 5 Lakh-10 Lakh) 11662 885 738 Total 151779 2868 2412 Finance to Light Com
Slide 31: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 31
Slide 32: Structural Transformation
Structural Transformation Focus on re-designing and streamlining key elements of business Redesign the branch operating model Set up Business Revamp Union to streamline processes and increase Analytics Loan Points to sales (outbound & service to sales) reduce TAT and Team, design and implement cross
Slide 33: Structural Transformation: HR and organization
Structural Transformation … and strengthening core elements of HR and organization ▪ Clear segregation of roles & responsibilities ▪ Specialised focus and terms for key areas of growth (e.g., home loan) 6 ▪ Align organization Organization to the project goals Structure ▪ Engage employees beyond work
Slide 34: Structural Transformation
Structural Transformation Utkarsh implemented in 21 regions 21 clusters for rural/semi-urban branches Ludhiana Chandigarh Meerut Delhi Delhi (N) (S) Jaipur Kanpur Lucknow Varanasi Ahmedabad Baroda Nagpur Kolkata Mumbai Pune Raipur (N,S,W) Hyderabad Bangalore Chennai NOTE: Numbers shown are cumulativ
Slide 35: Key Shifts to Empower Organization Structure
Structural Transformation Key Shifts to Empower Organization Structure End to End Ownership of Large Corporate Business • Revised model of functioning for Industrial Finance Branches • Focus on new business generation • Focus on income generation through cross-selling Stressed Assets Management Stru
Slide 36: Structural Transformation
Structural Transformation Sales & Marketing setup and specialization • Specific focus on 4 sets of Marketing Officers with defined key roles: • Set 1: Attached to Regional Offices • Set 2: Mapped to respective Union Loan Points • Set 3: Tabulous Banking • Set 4: Government Business Focused approach
Slide 37: Your goals matter to us.
Your goals matter to us. (Against Term epost Upto 80% of the term Deposit EVM chip card-Secure card ¥ Noannual charges
Slide 38: Structural Transformation: Impact
Structural Transformation: Impact Transactions through Alternate Channels Internet Banking Users (lacs) (In %) 15.3 67.9 14.5 66.7 66.6 66.6 13.8 13.2 12.8 63.9 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Debit Card (lacs) Registered Mobile Banking Users (Lacs) 11.34 309 28
Slide 39: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 39
Slide 40: Awards
Awards Innovative HR practices recognition by Times ascent The Bank was recognized under Top 50 PSU Organization with Innovative HR Practices Golden Peacock Award Union Bank of India won the Golden Peacock HR Excellence Award for the year 2016. Union Bank of India won this Award third time in a row.
Slide 41: Awards
Awards IBA Banking Technology Awards Best Financial inclusion initiative IBA Runner up award for Technology bank of the year Six Banking Technology Awards from IBA 1. Best Technology Bank of year, 2. Best use of Digital & Channels Technologies, 3. Best use of Technology to enhance Customer Experienc
Slide 42: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as “is”, “aims”, „will‟, „would‟, „indicating‟, „expected to‟ etc., and similar expressions or variations of such expressions may constitute „forward-looking stateme
Slide 43: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com
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